Stock Market Update

Equity futures point to a higher opening this morning after yesterday's easing in oil prices and tech rally sent the S&P 500 and Nasdaq Composite to fresh record highs.

Those catalysts will be in play this morning, with Axios reporting that the White House believes the U.S. and Iran are close to a deal to end the war that would involve Iran agreeing to a 12--15-year moratorium on nuclear enrichment in exchange for sanctions relief. Both sides would agree to lift restrictions on the Strait of Hormuz. However, nothing has been officially agreed to yet.

Crude oil is currently down $10.68 (-1.04%) to $91.59 per barrel.

Several leading tech names are poised for large gains at the open, adding to the enthusiasm in the futures market this morning. Advanced Micro Devices (AMD 422.11, +66.85, +18.8%) is sharply higher in the premarket after a blowout earnings report, while NVIDIA (NVDA 201.68, +5.18, +2.6%), Alphabet (GOOG 389.40, +5.09, +1.3%), and Corning (GLW 190.47, +28.37, +17.5%) add to the AI enthusiasm with headlines of their own.

Today's data slate is notably thin. The MBA Mortgage Applications Index for the week ended May 2 decreased 4.4%, from a prior decrease of 1.6%.

In corporate news:

• Advanced Micro Devices (AMD 422.11, +66.85, +18.8%) beat EPS expectations by $0.08, beat revenue expectations, and guided Q2 revenues above consensus.
• Anthropic is aiming to spend $200 billion on Alphabet (GOOG 389.40, +5.09, +1.3%) cloud and chips, according to The Information.
• NVIDIA (NVDA 201.68, +5.18, +2.6%) and Corning (GLW 190.47, +28.37, +17.5%) announced a long-term partnership to strengthen U.S. manufacturing for AI infrastructure, with the expansion including the construction of three new advanced manufacturing facilities in North Carolina and Texas.
• Walt Disney (DIS 104.76, +4.28, +4.2%) beat EPS expectations by $0.08, beat revenue expectations, and guided FY26 EPS above consensus.

Equity indices in the Asia-Pacific region had a strong showing on Wednesday with South Korea's Kospi (+6.5%) powering to a fresh record after returning from yesterday's closure while Japan's Nikkei will reopen tomorrow. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +1.2%, China's Shanghai Composite: +1.2%, India's Sensex: +1.2%, South Korea's Kospi: +6.5%, Australia's ASX All Ordinaries: +1.3%.

In news:

• The Japanese yen extended last week's bounce against the dollar, prompting speculation about an intervention from Japan's Ministry of Finance.
• China has called on the U.S. to drop the Section 301 investigation into China's excess capacity ahead of President Trump's upcoming meeting with President Xi.
• New Zealand's Unemployment Rate dipped to 5.3% from 5.4% in April, but average hourly earnings decelerated.

In economic data:

• China's April RatingDog Services PMI 52.6 (expected 52.0; last 52.1)
• South Korea's April CPI 0.5% m/m, as expected (last 0.3%); 2.6% yr/yr, as expected (last 2.2%)
• Hong Kong's April Manufacturing PMI 48.6 (last 49.3) and March Retail Sales 12.8% yr/yr (last 19.3%)
• New Zealand's Q1 Employment Change 0.2% qtr/qtr (expected 0.3%; last 0.5%) and Q1 Labor Cost Index 0.5% qtr/qtr (expected 0.4%; last 0.4%). Q1 Unemployment Rate 5.3% (expected 5.4%;last 5.4%) and Participation Rate 70.4% (expected 70.5%; last 70.5%). April AIG Construction Index -19.3 (last -57.1) and AIG Manufacturing Index -27.9 (last -28.6)
• India's April Services PMI 58.8 (expected 57.9; last 57.5)

Major European indices trade on a firmly higher note, encouraged by news that President Trump ordered a pause to the U.S. control over movement of ships through the Strait of Hormuz due to progress in negotiations with Iran's leadership. STOXX Europe 600: +2.5%, Germany's DAX: +2.9%, U.K.'s FTSE 100: +2.5%, France's CAC 40: +3.3%, Italy's FTSE MIB: +2.1%, Spain's IBEX 35: +2.9%.

In news:

• France's President Macron is expected to name Emmanuel Moulin to succeed outgoing Bank of France Governor Villeroy de Galhau. Mr. Moulin previously served as secretary general to the president.
• Bank of England Governor Bailey said that investors should be mindful of risks associated with private credit.

In economic data:

• Eurozone's April Services PMI 47.6 (expected 47.4; last 50.2). March PPI 3.4% m/m (expected 3.3%; last -0.6%); 2.1% yr/yr (expected 1.8%; last -3.0%)
• Germany's April Services PMI 46.9, as expected (last 50.9)
• U.K.'s April Services PMI 52.7 (expected 52.0; last 50.5)
• France's March Industrial Production 1.0% m/m (expected 0.5%; last -0.9%). April Services PMI 46.5, as expected (last 48.8)
• Italy's April Services PMI 49.8 (expected 47.9; last 48.8). March Retail Sales 0.8% m/m (expected -0.4%; last -0.1%); 3.7% yr/yr (last 1.6%)
• Spain's April Services PMI 47.9 (expected 51.9; last 53.3)